The Lagos State Government, in partnership with the Bank of Industry and Sterling Bank, has unveiled a groundbreaking initiative designed to empower Micro, Small, and Medium Enterprises (MSMEs) with affordable finance and support. Named the Lagos State–BOI–Sterling Bank MSME Access to Finance Scheme , this program offers single-digit loans at an annual interest rate of just nine per cent, aiming to foster business growth, job creation, and economic development.
In a statement released on Wednesday, following the signing of a Memorandum of Understanding (MoU), the collaboration was hailed as a transformative step for MSMEs in Lagos. The initiative was officially launched during a ceremony organized by the Lagos State Ministry of Commerce, Industry, and Investment.
Speaking at the event, Lagos State Governor Babajide Sanwo-Olu underscored the importance of public-private partnerships in driving economic progress. He described the scheme as “a living example of synergy,” emphasizing its role in providing affordable credit and training to small businesses.
“This programme, branded as LASMECO, is the first of its kind in our state. It is specifically designed to address the challenges faced by MSMEs. For the first time, thousands of entrepreneurs in Lagos will have access to loans of up to N10 million at an annual interest rate of just nine per cent,” Sanwo-Olu stated.
He highlighted that the initiative would alleviate the financial burdens faced by small business owners, who often struggle with prohibitively high lending rates. By offering accessible financing, the program seeks to break barriers hindering the growth of small businesses in Lagos.
Dr. Olasupo Olusi, Managing Director and CEO of the Bank of Industry, echoed these sentiments, noting that the MoU marks the beginning of a transformative chapter for MSMEs. He emphasized that the partnership would unlock the creativity, resilience, and potential of small businesses by providing financial resources and eliminating structural obstacles.
Olusi further revealed that the program aims to create 10,000 jobs through enterprise development, thereby boosting wealth creation and reducing poverty in the state. “In Nigeria, where MSMEs are the backbone of the economy, access to finance is crucial. This initiative targets sectors vital to Lagos State’s development, including healthcare, manufacturing, agribusiness, creative industries, and the digital economy,” he explained.
The scheme is fully technology-driven, ensuring speed, transparency, and real-time impact tracking. To mitigate risks, up to 50 per cent of the fund is backed by a bank guarantee, fostering confidence among stakeholders. Access to the funds will be facilitated through certified cooperatives, ensuring structure and accountability. Additionally, the program includes an accelerator component offering mentorship, training, and digital tools to help MSMEs grow and compete effectively.
Under this initiative, MSMEs in Lagos can access loans of up to N10 million without collateral, at the competitive nine per cent interest rate. The comprehensive support provided through this scheme equips entrepreneurs with the resources, training, and guidance needed to succeed and thrive.
This timely intervention offers a much-needed lifeline to small businesses, contributing to the broader goal of economic recovery and growth in Lagos State. According to reports, the Federal Government, through the Bank of Industry, has disbursed N2.25 billion to support 16,696 MSMEs in Gombe State, underscoring the nationwide push to strengthen small businesses.
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